UnitedHealth stock ticks lower amid expanded Justice Department probe

Investing.com -- Unitedhealth Group (NYSE: UNH) stock fell 1.4% in late Tuesday trade following reports that the U.S. Justice Department’s criminal investigation into the health insurance giant has expanded beyond previously known Medicare fraud inquiries.

The criminal division is now examining UnitedHealth’s prescription management services at its pharmacy benefit manager Optum Rx, as well as how the company reimburses its own doctors, according to Bloomberg, citing people familiar with the matter. This broader scrutiny adds to existing investigations into the company’s Medicare Advantage billing practices that have been ongoing since at least last summer.

The Justice Department has not accused UnitedHealth or its executives of wrongdoing, and the existence of a probe doesn’t guarantee charges will be filed. However, the expanded scope of the investigation adds another layer of complexity for the nation’s largest health insurer.

UnitedHealth referred Bloomberg to a July regulatory filing in which it acknowledged responding to both civil and criminal Justice Department probes, stating it has "full confidence in its practices."

The health care conglomerate is also facing a civil fraud investigation into its Medicare billing practices that’s separate from the criminal inquiry, as well as potential civil antitrust issues. Additionally, the U.S. Federal Trade Commission has filed a lawsuit against UnitedHealth and two rival pharmacy benefits managers, alleging they drove up insulin prices, claims the companies have disputed as "baseless."

UnitedHealth is the largest seller of Medicare Advantage plans, private health insurance options for seniors that have been a significant growth driver for the health insurance industry in recent years.

You May Also Be Interested In

• Barclays upgrades American Tower and Crown Castle on valuation, growth catalysts
• Morgan Stanley sees modest downside risks to US aluminum premium
• Barclays reports U.S. hotel revenue per room up 8.2% in July